Apple Inc. (NASDAQ:AAPL) has been floundering ever since September when it hit its record high stock price, and while there are still many skeptics, some are absolutely convinced that a turnaround is imminent. There’s been talk about wearable computing devices like the rumored iWatch, and MarketWatch contributor Nigam Arora believes Apple Inc. (NASDAQ:AAPL) is putting together the perfect team to revolutionize the smart watch market.
The Apple’s iWatch As The Next iPhone?
Arora rolls back time to the introduction of the iPhone and the way Apple Inc. (NASDAQ:AAPL) revolutionized the smartphone market. He notes that the technology that became the iPhone existed previously in bits and pieces that were scattered everywhere. What Steve Jobs did essentially was bring those bits and pieces into one unit—the iPhone—which changed the smartphone market forever.
Today the iPhone makes up about 70 percent of the company’s profits, and it was one of the earliest products which made Apple Inc. (NASDAQ:AAPL) into the powerhouse it is now. According to Arora, the smart watch market right now is similar to the smartphone market right before Apple Inc. (NASDAQ:AAPL) created the iPhone.
The Wearable Computing Device Market
Perhaps the most-talked about wearable computing device is Google Glass, which is basically a pair of glasses with a mounted display. The device is quite expensive though, and reactions to consumers and reviewers have been mixed so far. There are questions about how much the device will appeal to consumers who either do not wear glasses or who prefer contact lenses because they don’t like to wear glasses.
There are also a number of smart watch devices on the market, like the Pebble watch. The device’s development was backed by a Kickstarter project, and it is being marketed as the first watch made for the 21st century. The smart watch uses Bluetooth to connect with iOS or Android devices and is able to show notifications for calls, emails and other messages.
Nike’s FuelBand is targeted mainly at the fitness enthusiast, although it also connects with iOS devices. And then there are wearable scanning devices, which have been popular in warehouses for more than a decade.
Apple’s iWatch Team
Of course Apple Inc. (NASDAQ:AAPL) has been registering the iWatch trademark in several countries recently, and CEO Tim Cook said at the D11 conference this year that they were interested in the smart watch sector. But while some think the iWatch will be a flop or at the very list a small niche product, Arora believes it will be a hit.
He points to Apple Inc. (NASDAQ:AAPL)’s recent hiring of former Yves Saint Laurent CEO Paul Deneve as the company’s attempt to put together an iWatch team. Of course Yves Saint Laurent is a luxury brand in France which specializes in accessories and apparel. Before his tenure at the luxury brand, Deneve also worked with Apple Inc. (NASDAQ:AAPL), so he not only knows the apparel space but also Apple Inc. (NASDAQ:AAPL) itself.